In-farm diversity stabilizes return on capital in Argentine agro-ecosystems

Autores
Pacin, Fernando; Oesterheld, Martin
Año de publicación
2014
Idioma
inglés
Tipo de recurso
artículo
Estado
versión publicada
Descripción
Agricultural production faces risks of various kinds caused by weather, pests, markets, and policy changes. Minimizing these risks is an ongoing objective of farmers. The diversification of activities and the selection of the most stable activities are frequently mentioned as potential stabilizing factors. The aim of this study is to determine the impact of diversification and selection of activities on economic stability over time in a set of farms located in the southwest of the Pampa Region, Argentina. We use the coefficient of variation of return on capital as indicator of economic stability. These farms routinely evaluate their economic performance through a shared methodology. We compiled a data set that included 366 annual productive and economic results for 82 farms in 7 years between 2000 and 2008. We analyzed the economic and yield results of these farms and of a set of simulated farms that differentially combined various activities. We found that a greater diversification of activities was associated with an increase of stability, measured by a reduction of the coefficient of variation of return on capital as diversification increased. This effect resulted from a significant increase of mean return on capital without changing the standard deviation as diversification increased. We also found significant differences in this indicator of economic stability of individual activities as a result of different combinations of variability in yields, prices and costs. Birth to slaughter livestock operation was much more economically stable than either cow-calf or fattening operations. Wheat was the most stable crop, corn was the least stable crop, and sunflower and soybean showed intermediate stability. Overall, livestock activities were more stable than agricultural crops. Simulated farms showed that more diversified combinations were economically more stable. The stability of the average real farm was very similar to the most stable farm simulation. This suggests that farmers in the study area have found in the diversification and selection of activities useful tools to reduce the economic risks they face.
Fil: Pacin, Fernando. Consejo Nacional de Investigaciones Científicas y Técnicas. Oficina de Coordinación Administrativa Parque Centenario. Instituto de Investigaciones Fisiológicas y Ecológicas Vinculadas a la Agricultura; Argentina
Fil: Oesterheld, Martin. Consejo Nacional de Investigaciones Científicas y Técnicas. Oficina de Coordinación Administrativa Parque Centenario. Instituto de Investigaciones Fisiológicas y Ecológicas Vinculadas a la Agricultura; Argentina
Materia
Risk
Grazing
Livestock
Portfolio
Synergy
Nivel de accesibilidad
acceso abierto
Condiciones de uso
https://creativecommons.org/licenses/by-nc-nd/2.5/ar/
Repositorio
CONICET Digital (CONICET)
Institución
Consejo Nacional de Investigaciones Científicas y Técnicas
OAI Identificador
oai:ri.conicet.gov.ar:11336/4153

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spelling In-farm diversity stabilizes return on capital in Argentine agro-ecosystemsPacin, FernandoOesterheld, MartinRiskGrazingLivestockPortfolioSynergyhttps://purl.org/becyt/ford/5.2https://purl.org/becyt/ford/5https://purl.org/becyt/ford/4.1https://purl.org/becyt/ford/4Agricultural production faces risks of various kinds caused by weather, pests, markets, and policy changes. Minimizing these risks is an ongoing objective of farmers. The diversification of activities and the selection of the most stable activities are frequently mentioned as potential stabilizing factors. The aim of this study is to determine the impact of diversification and selection of activities on economic stability over time in a set of farms located in the southwest of the Pampa Region, Argentina. We use the coefficient of variation of return on capital as indicator of economic stability. These farms routinely evaluate their economic performance through a shared methodology. We compiled a data set that included 366 annual productive and economic results for 82 farms in 7 years between 2000 and 2008. We analyzed the economic and yield results of these farms and of a set of simulated farms that differentially combined various activities. We found that a greater diversification of activities was associated with an increase of stability, measured by a reduction of the coefficient of variation of return on capital as diversification increased. This effect resulted from a significant increase of mean return on capital without changing the standard deviation as diversification increased. We also found significant differences in this indicator of economic stability of individual activities as a result of different combinations of variability in yields, prices and costs. Birth to slaughter livestock operation was much more economically stable than either cow-calf or fattening operations. Wheat was the most stable crop, corn was the least stable crop, and sunflower and soybean showed intermediate stability. Overall, livestock activities were more stable than agricultural crops. Simulated farms showed that more diversified combinations were economically more stable. The stability of the average real farm was very similar to the most stable farm simulation. This suggests that farmers in the study area have found in the diversification and selection of activities useful tools to reduce the economic risks they face.Fil: Pacin, Fernando. Consejo Nacional de Investigaciones Científicas y Técnicas. Oficina de Coordinación Administrativa Parque Centenario. Instituto de Investigaciones Fisiológicas y Ecológicas Vinculadas a la Agricultura; ArgentinaFil: Oesterheld, Martin. Consejo Nacional de Investigaciones Científicas y Técnicas. Oficina de Coordinación Administrativa Parque Centenario. Instituto de Investigaciones Fisiológicas y Ecológicas Vinculadas a la Agricultura; ArgentinaElsevier2014-03info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionhttp://purl.org/coar/resource_type/c_6501info:ar-repo/semantics/articuloapplication/pdfapplication/pdfhttp://hdl.handle.net/11336/4153Pacin, Fernando; Oesterheld, Martin; In-farm diversity stabilizes return on capital in Argentine agro-ecosystems; Elsevier; Agricultural Systems; 124; 3-2014; 51-590308-521Xenginfo:eu-repo/semantics/altIdentifier/url/http://www.sciencedirect.com/science/article/pii/S0308521X13001327info:eu-repo/semantics/altIdentifier/issn/0308-521Xinfo:eu-repo/semantics/altIdentifier/url/http://dx.doi.org/10.1016/j.agsy.2013.10.008info:eu-repo/semantics/openAccesshttps://creativecommons.org/licenses/by-nc-nd/2.5/ar/reponame:CONICET Digital (CONICET)instname:Consejo Nacional de Investigaciones Científicas y Técnicas2025-09-29T10:02:09Zoai:ri.conicet.gov.ar:11336/4153instacron:CONICETInstitucionalhttp://ri.conicet.gov.ar/Organismo científico-tecnológicoNo correspondehttp://ri.conicet.gov.ar/oai/requestdasensio@conicet.gov.ar; lcarlino@conicet.gov.arArgentinaNo correspondeNo correspondeNo correspondeopendoar:34982025-09-29 10:02:09.661CONICET Digital (CONICET) - Consejo Nacional de Investigaciones Científicas y Técnicasfalse
dc.title.none.fl_str_mv In-farm diversity stabilizes return on capital in Argentine agro-ecosystems
title In-farm diversity stabilizes return on capital in Argentine agro-ecosystems
spellingShingle In-farm diversity stabilizes return on capital in Argentine agro-ecosystems
Pacin, Fernando
Risk
Grazing
Livestock
Portfolio
Synergy
title_short In-farm diversity stabilizes return on capital in Argentine agro-ecosystems
title_full In-farm diversity stabilizes return on capital in Argentine agro-ecosystems
title_fullStr In-farm diversity stabilizes return on capital in Argentine agro-ecosystems
title_full_unstemmed In-farm diversity stabilizes return on capital in Argentine agro-ecosystems
title_sort In-farm diversity stabilizes return on capital in Argentine agro-ecosystems
dc.creator.none.fl_str_mv Pacin, Fernando
Oesterheld, Martin
author Pacin, Fernando
author_facet Pacin, Fernando
Oesterheld, Martin
author_role author
author2 Oesterheld, Martin
author2_role author
dc.subject.none.fl_str_mv Risk
Grazing
Livestock
Portfolio
Synergy
topic Risk
Grazing
Livestock
Portfolio
Synergy
purl_subject.fl_str_mv https://purl.org/becyt/ford/5.2
https://purl.org/becyt/ford/5
https://purl.org/becyt/ford/4.1
https://purl.org/becyt/ford/4
dc.description.none.fl_txt_mv Agricultural production faces risks of various kinds caused by weather, pests, markets, and policy changes. Minimizing these risks is an ongoing objective of farmers. The diversification of activities and the selection of the most stable activities are frequently mentioned as potential stabilizing factors. The aim of this study is to determine the impact of diversification and selection of activities on economic stability over time in a set of farms located in the southwest of the Pampa Region, Argentina. We use the coefficient of variation of return on capital as indicator of economic stability. These farms routinely evaluate their economic performance through a shared methodology. We compiled a data set that included 366 annual productive and economic results for 82 farms in 7 years between 2000 and 2008. We analyzed the economic and yield results of these farms and of a set of simulated farms that differentially combined various activities. We found that a greater diversification of activities was associated with an increase of stability, measured by a reduction of the coefficient of variation of return on capital as diversification increased. This effect resulted from a significant increase of mean return on capital without changing the standard deviation as diversification increased. We also found significant differences in this indicator of economic stability of individual activities as a result of different combinations of variability in yields, prices and costs. Birth to slaughter livestock operation was much more economically stable than either cow-calf or fattening operations. Wheat was the most stable crop, corn was the least stable crop, and sunflower and soybean showed intermediate stability. Overall, livestock activities were more stable than agricultural crops. Simulated farms showed that more diversified combinations were economically more stable. The stability of the average real farm was very similar to the most stable farm simulation. This suggests that farmers in the study area have found in the diversification and selection of activities useful tools to reduce the economic risks they face.
Fil: Pacin, Fernando. Consejo Nacional de Investigaciones Científicas y Técnicas. Oficina de Coordinación Administrativa Parque Centenario. Instituto de Investigaciones Fisiológicas y Ecológicas Vinculadas a la Agricultura; Argentina
Fil: Oesterheld, Martin. Consejo Nacional de Investigaciones Científicas y Técnicas. Oficina de Coordinación Administrativa Parque Centenario. Instituto de Investigaciones Fisiológicas y Ecológicas Vinculadas a la Agricultura; Argentina
description Agricultural production faces risks of various kinds caused by weather, pests, markets, and policy changes. Minimizing these risks is an ongoing objective of farmers. The diversification of activities and the selection of the most stable activities are frequently mentioned as potential stabilizing factors. The aim of this study is to determine the impact of diversification and selection of activities on economic stability over time in a set of farms located in the southwest of the Pampa Region, Argentina. We use the coefficient of variation of return on capital as indicator of economic stability. These farms routinely evaluate their economic performance through a shared methodology. We compiled a data set that included 366 annual productive and economic results for 82 farms in 7 years between 2000 and 2008. We analyzed the economic and yield results of these farms and of a set of simulated farms that differentially combined various activities. We found that a greater diversification of activities was associated with an increase of stability, measured by a reduction of the coefficient of variation of return on capital as diversification increased. This effect resulted from a significant increase of mean return on capital without changing the standard deviation as diversification increased. We also found significant differences in this indicator of economic stability of individual activities as a result of different combinations of variability in yields, prices and costs. Birth to slaughter livestock operation was much more economically stable than either cow-calf or fattening operations. Wheat was the most stable crop, corn was the least stable crop, and sunflower and soybean showed intermediate stability. Overall, livestock activities were more stable than agricultural crops. Simulated farms showed that more diversified combinations were economically more stable. The stability of the average real farm was very similar to the most stable farm simulation. This suggests that farmers in the study area have found in the diversification and selection of activities useful tools to reduce the economic risks they face.
publishDate 2014
dc.date.none.fl_str_mv 2014-03
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
http://purl.org/coar/resource_type/c_6501
info:ar-repo/semantics/articulo
format article
status_str publishedVersion
dc.identifier.none.fl_str_mv http://hdl.handle.net/11336/4153
Pacin, Fernando; Oesterheld, Martin; In-farm diversity stabilizes return on capital in Argentine agro-ecosystems; Elsevier; Agricultural Systems; 124; 3-2014; 51-59
0308-521X
url http://hdl.handle.net/11336/4153
identifier_str_mv Pacin, Fernando; Oesterheld, Martin; In-farm diversity stabilizes return on capital in Argentine agro-ecosystems; Elsevier; Agricultural Systems; 124; 3-2014; 51-59
0308-521X
dc.language.none.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv info:eu-repo/semantics/altIdentifier/url/http://www.sciencedirect.com/science/article/pii/S0308521X13001327
info:eu-repo/semantics/altIdentifier/issn/0308-521X
info:eu-repo/semantics/altIdentifier/url/http://dx.doi.org/10.1016/j.agsy.2013.10.008
dc.rights.none.fl_str_mv info:eu-repo/semantics/openAccess
https://creativecommons.org/licenses/by-nc-nd/2.5/ar/
eu_rights_str_mv openAccess
rights_invalid_str_mv https://creativecommons.org/licenses/by-nc-nd/2.5/ar/
dc.format.none.fl_str_mv application/pdf
application/pdf
dc.publisher.none.fl_str_mv Elsevier
publisher.none.fl_str_mv Elsevier
dc.source.none.fl_str_mv reponame:CONICET Digital (CONICET)
instname:Consejo Nacional de Investigaciones Científicas y Técnicas
reponame_str CONICET Digital (CONICET)
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repository.mail.fl_str_mv dasensio@conicet.gov.ar; lcarlino@conicet.gov.ar
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